regulation

FCA green lights Revolut, making no UK crypto firms operating under temporary status

Revolut had been the last “holdout” out of the 12 companies originally granted FCA temporary registration to continue offering crypto services in March.

The United Kingdom’s Financial Conduct Authority, or FCA, has added cryptocurrency-friendly payments app Revolut to its list of companies authorized to offer crypto products and services in the country.

In a Monday update to its list of registered crypto asset firms in the U.K., the FCA showed Revolut was in compliance with amended regulations from 2017 on “Money Laundering, Terrorist Financing and Transfer of Funds.” The fintech firm joined 37 other companies with the green light to offer crypto services in the country after being granted an extension to operate as a crypto asset firm with temporary registration in March.

Firms offering crypto-related products and services in the U.K. are permitted to operate following registration with the FCA, a rule in force since 2020. However, following a crackdown in the country on Anti-Money Laundering, or AML, and Combatting the Financing of Terrorism, or CFT, requirements, many companies, including Revolut, were granted temporary registration status, allowing them to operate while seemingly waiting for full compliance.

At the time of publication, there were no crypto asset firms still operating under the FCA’s temporary status. Revolut had been the last “holdout” out of the 12 companies originally granted temporary registration in March.

A Sept. 5 report from the Financial Times suggested the U.K. Financial Reporting Council found flaws in an audit of Revolut, which included an “unacceptably high” risk of “material misstatement.” As of July 31, Revolut was valued as a $33-billion fintech firm following an $800-million investment round.

There has been a major shakeup in the U.K. politically following Prime Minister Liz Truss replacing Boris Johnson and the subsequent death of Queen Elizabeth II. The government announced on Sept. 22 that lawmakers had introduced the Economic Crime and Corporate Transparency Bill — legislation aimed at empowering the country’s National Crime Agency to “seize, freeze and recover” crypto assets. However, Truss’ Economic Secretary Richard Fuller has also spoken of making the U.K. the “dominant global hub for crypto technologies.”

Terra co-founder Do Kwon says he’s ‘making zero effort to hide’ following Interpol notice

Do Kwon told his more than one million Twitter followers that he had not seen his name on Interpol’s Red Notice list, but not all names are made available to the public.

Terra co-founder Do Kwon, wanted by South Korean authorities and whose whereabouts are currently unknown, has suggested he’s not changing his routine in response to potential legal action.

In a Monday tweet, Kwon said members of Crypto Twitter had likely seen him walking on the street or around shopping malls — without mentioning the city or country — in “the past couple weeks” despite Interpol reportedly issuing a Red Notice for the Terra co-founder. Kwon told his more than one million followers in a reply that he had not seen his name on Interpol’s list of individuals to “locate and provisionally arrest […] pending extradition, surrender, or similar legal action,” but not all names are made public.

“I’m writing code in my living room,” said Kwon. “I’m making zero effort to hide.”

Active on social media while facing potential arrest and prosecution in South Korea, Kwon showed his location as Singapore on his Twitter account at the time of publication, but a Sept. 17 report from Reuters suggested he may no longer be in the country. The Terra co-founder is a South Korean national. Dual citizenship in South Korea is generally not permitted with certain exceptions, but it’s unclear if Kwon holds more than one country’s passport.

A prominent figure in the crypto for his involvement with Terraforms Labs, Kwon became a person of interest among South Korean authorities when Terra’s algorithmic stablecoin TerraUSD Classic (USTC) — originally TerraUSD (UST) — depegged from the U.S. dollar and dropped to almost zero within weeks. The price of Terra (LUNA) — now Terra Classic (LUNC) — also crashed amid liquidity issues reported at many platforms including Celsius.

Kwon, Terra, and certain company employees were the target of an investigation by South Korean financial authorities, who reportedly raided the offices of crypto exchanges Gopax, Coinone, Upbit, Bithumb, and Korbit in July. A South Korean court later issued a warrant for the arrest of Kwon and five individuals connected to Terra for allegedly violating capital markets laws.

Kwon posted on Sept. 17 that he wasn’t “‘on the run’ or anything similar” after the Singapore Police Force (SPF) said Kwon wasn’t in the city-state. South Korea has no extradition agreement with Singapore, and Interpol’s Red Notice can only request local law enforcement detain Kwon if he’s located.

Amid the controversy over Kwon’s location and potential arrest, Indonesian financial authorities have reportedly been working to modify existing policy to prevent similar situations among leadership at the country’s crypto firms. Cointelegraph reported on Sept. 21 that Commodity Futures Trading Regulatory Agency acting head Didid Noordiatmoko said proposed changes to ensure two-thirds of directors and commissioners at crypto companies were Indonesian citizens would help leadership “from fleeing the country if any problem arises.”

Terra co-founder Do Kwon says he’s ‘making zero effort to hide’ following Interpol notice

Do Kwon told his more than one million Twitter followers that he had not seen his name on Interpol’s Red Notice list, but not all names are made available to the public.

Terra co-founder Do Kwon, wanted by South Korean authorities and whose whereabouts are currently unknown, has suggested he’s not changing his routine in response to potential legal action.

“I’m writing code in my living room,” said Kwon. “I’m making zero effort to hide.”

Active on social media while facing potential arrest and prosecution in South Korea, Kwon showed his location as Singapore on his Twitter account at the time of publication, but a Sept. 17 report from Reuters suggested he may no longer be in the country. The Terra co-founder is a South Korean national. Dual citizenship in South Korea is generally not permitted, though with certain exceptions, but it’s unclear if Kwon holds more than one country’s passport.

A prominent figure in the crypto for his involvement with Terraforms Labs, Kwon became a person of interest among South Korean authorities when Terra’s algorithmic stablecoin TerraUSD Classic (USTC) — originally TerraUSD (UST) — depegged from the United States dollar and dropped to almost zero within weeks. The price of Terra (LUNA) — now Terra Classic (LUNC) — also crashed amid liquidity issues reported on many platforms including Celsius.

Kwon, Terra and other company employees were the target of an investigation by South Korean financial authorities, who reportedly raided the offices of crypto exchanges Gopax, Coinone, Upbit, Bithumb and Korbit in July. A South Korean court later issued a warrant for the arrest of Kwon and five individuals connected to Terra for allegedly violating capital markets laws.

Amid the controversy over Kwon’s location and potential arrest, Indonesian financial authorities have reportedly been working on modifying existing policy to prevent similar situations among leadership at the country’s crypto firms. Cointelegraph reported on Sept. 21 that Commodity Futures Trading Regulatory Agency acting head Didid Noordiatmoko said proposed changes to ensure two-thirds of directors and commissioners at crypto companies were Indonesian citizens would help leadership “from fleeing the country if any problem arises.”

Pro-centralization Russian president grants citizenship to Edward Snowden: Report

The views of the NSA whistleblower, who has been in Russia since 2013, seemingly clash with those of President Vladimir Putin, who has often worked against promoting decentralization.

Russian President Vladimir Putin reportedly granted citizenship to United States National Security Agency whistleblower Edward Snowden, who had been residing in the country since 2013.

According to a Monday report from Reuters, Putin signed a decree effectively changing Snowden’s legal status in Russia from permanent resident to citizen. The NSA whistleblower has been in exile from the United States following his leak of thousands of classified documents to journalists but continued to speak on issues including national security in addition to cryptocurrencies and blockchain technology.

While Putin has taken legislative action in Russia that seems to curtail the use of crypto — including banning the use of digital assets as payments in a July law — Snowden has frequently spoken on the benefits of cryptocurrencies like Bitcoin (BTC). The whistleblower and now Russian citizen revealed in 2019 that he used BTC to pay for the servers from which he released the infamous documents of the NSA leak, and said in April he played a pivotal role in creating the privacy token Zcash (ZEC).

“Snowden is not a traitor,” said Putin in a 2017 interview with film director Oliver Stone. “He did not betray the interests of his country, nor did he transfer any information to any other country that would damage his own people […] He shouldn’t have [leaked NSA secrets]. My view is that what he did was wrong.”

Snowden would potentially face charges related to espionage from the Department of Justice if he were to return to the United States. It’s unclear at the time of publication what led President Putin to grant Snowden citizenship, but the U.S. and Russia have faced volatile diplomatic relations following Russia’s invasion of Ukraine and thesubsequent economic sanctions imposed by the U.S. and other nations. In contrast to Putin — whom many have criticized as having taken a more autocratic role in leading Russia — Snowden has often spoken on the dangers of government overreach and the need for oversight.

“I don’t care if you’re in the United States, I don’t care if you’re in Germany, and I don’t care if you’re in Russia, I don’t care if you’re in China — it is a global trend where we see government doing more,” said Snowden in DeData Salon fireside chat from Sept. 23. “They have greater capability because of technology acting as a magnifier of pre-existing power. It allows them to increase their leverage, right? They’re leveraging their influence to try to sort of act and compete not just within their own borders but globally and now we have those levers starting to press on each other and it’s causing sort of problems and conflicts all over the world.”

Did you know that whistleblowers are sentenced to more time in prison than corrupt officials who trade secrets for sex⁠—more time than even actual spies?

The government has made *telling* the truth a greater crime than *selling* it.#PardonRealityWinner pic.twitter.com/dMdFxOlf4g

— Edward Snowden (@Snowden) July 26, 2022

Snowden’s reported Russian citizenship status would not necessarily preclude the whistleblower from ever returning to the United States. A sitting U.S. president has the constitutional authority to grant reprieves and pardons for “offenses” against the country, which would likely include federal espionage charges. However, despite calls from many civil liberties advocacy groups, the two previous presidential administrations have not pardoned Snowden, nor has President Joe Biden suggested thahe will during his term.

Kraken’s incoming CEO: No plans to register with SEC

Dave Ripley says he doesn’t see a reason to register with the SEC as an exchange because Kraken does not offer securities to users.

The newly appointed CEO of crypto exchange Kraken has stated that he has no plans to register the company with the United States Securities and Exchange Commission (SEC) or delist any tokens that have been labeled by the SEC as securities.

In a Reuters report on Thursday, incoming CEO Dave Ripley said he doesn’t see a reason to register with the SEC as an exchange because it does not offer securities.

“There are not any tokens out there that are securities that we’re interested in listing,” he said.

However, he did not rule out listing security tokens entirely, noting that “there could be some new token out there that becomes interesting and also happens to simultaneously be a security, in that case, we would potentially be interested in that path.”

Dave Ripley is set to succeed Jesse Powell as CEO after the Kraken co-founder decided to step down on Sept. 21 after 11 years in the top job, citing the huge growth of the company and the large drain on him to oversee it all.

In the company statement announcing the change in leadership, Ripley said his goals going forward were “in lockstep” with Powell’s and also noted that Powell is planning “to stay very engaged with the company.”

Ripley’s statements on crypto assets appear to be in direct opposition to SEC Chairman Gary Gensler, who recently made his thoughts on the status of crypto exchanges and tokens very clear.

In a Sept. 15 Senate Committee on Banking, Gensler reiterated his stance that most cryptocurrencies are securities and many intermediaries, such as exchanges, broker-dealers and those with custodial functions, deal in securities and should be registered with the SEC “in some capacity.”

“Crypto intermediaries may need to one day register with both the SEC and the Commodity Futures Trading Commission (CFTC),” and there are already dual registrants.

The SEC has already launched an investigation into Coinbase earlier this year for alleged trading of unregistered securities.

At the time, Michael Bacina, an Australian digital assets lawyer with Piper Alderman told Cointelegraph the case could have a “serious and chilling effect” on crypto exchanges and token projects, “whether or not an ultimate finding is the tokens are or are not securities.”

Gensler has been a subject of heavy criticism this year both for his agency’s approach to crypto regulation and for its lack of action against “big fish” crypto exchanges.

In the past, Kraken has come under fire from the United States Treasury Department’s Office of Foreign Assets Control (OFAC) for allegedly allowing users based in Iran and other countries to buy and sell crypto, possibly violating U.S. sanctions.

The European Union is stifling stablecoin adoption

The Markets in Crypto-Assets framework stands to get in the way of Circle’s Euro Coin and other digital assets. Policymakers should revise the proposal.

The digital asset landscape in the European Union is evolving ahead of the passage of the Markets in Crypto-Assets (MiCA) regulation framework that aims to instill regulatory clarity around crypto assets. While well-intentioned, the current structure of MiCA may throttle innovation. But if a revised version of this policy passes, it could see the European Union become one of the leaders in the digital payment space. If not, then there is a genuine possibility of the continent falling behind.

MiCA aims to set a regulatory framework for the crypto asset industry within the EU. At this point, much still needs to be codified and clarified, but the broad strokes are now known.

Simultaneously, financial technology firm Circle launched a stablecoin called Euro Coin (EUROC). Euro Coin implements the same full-reserve model as the company’s existing USD Coin (USDC). This trusted digital United States dollar currency is used across centralized and decentralized exchanges and currently has over $55 billion in circulation. Therefore, designed for stability, EUROC is 100% backed by euros held in euro-denominated banking and is redeemable 1:1 for euros.

While these two pieces of news ostensibly seem like a positive advancement for crypto in Europe, all is not as it seems. The MiCA framework limits the volume for stablecoin payments to $200 million per day. This is too low of a cap to gauge its success and is ultimately only helpful in stifling innovation and hindering what these assets can offer. Take the perspective from Belgium, where, as of July 1, 2022, all merchants must offer at least one digital payment solution. But, here’s the catch: Cryptocurrency and stablecoins are not accepted as valid forms of digital payment under this provision.

MiCA’s limitations stand to hold back the potential of EUROC and other digital assets. And unless this barrier is overcome, the EU may not see the type of adoption required to lead crypto innovation on an international scale. And, it risks seeing the role of the euro as an international currency severely diminished.

MiCA’s unfriendly, or perhaps overcautious, stance on digital assets will undoubtedly have a profound impact on crypto projects looking to startup in the EU as well as those already established. In fact, Circle has already made it clear that it would not actively market the EUROC in the jurisdiction until the framework was clearer.

This is a major missed opportunity for the EU market to lead on digital asset innovation. Far from the supposed “innovation-friendly” approach sought by MiCA, the limitations imposed by the framework may end up reducing the attractiveness of the EU altogether and force leading digital currency businesses out of Europe.

Alternatively, welcoming and utilizing EUROC — and other such stablecoins — as an accepted form of digital settlement from a tried and tested issuer could offer a means to streamline the payment process, bringing down costs and bringing added protection for consumers. However, if the legal transaction volume remains arbitrarily capped at $200 million, adoption is likely to be limited as well.

Making euro stablecoins more accessible to virtual asset service providers (VASPs) would also be a great way to make the industry more resilient and better protect customers. Indeed, in Europe, when customers use a crypto custodian, in the event of bankruptcy, crypto assets can’t be seized by creditors but fiat assets can. Those are considered “prepayments.” So, additional access to euro stablecoins would mean a safer VASP industry.

Cryptocurrencies, European Union, Europe, Law, Government, Bitcoin Regulation, Stablecoin, Circle

Ultimately, MiCA is likely a net positive and significant step forward for crypto asset regulation in the EU. However, it’s essential to ensure that regulation remains innovation-friendly and tech neutral and, as such, there may be validity in the calls from European Central Bank President Christine Lagarde for a MiCA II framework. We might just not agree entirely with her on what should be in it.

This must include eliminating the cap on stablecoin volumes and making provisions for digital currencies, especially stablecoins, to be recognized and encouraged as a form of payment in the EU. Anything less and issuers and innovators will seek other, more forward-thinking jurisdictions.

Mathieu Hardy is chief development officer at OSOM Finance. Curious about how the digital realm was offering a new playground for social sciences, he began his career in IT change management before turning to digital business model innovation.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Framework to ban members of Congress and SCOTUS from trading stocks includes crypto provision

A bill based on the proposed framework banning crypto investments could help to “restore the public’s faith and trust in their public officials,” according to Zoe Lofgren.

Members of the United States House of Representatives and Senate as well as Supreme Court justices currently trading cryptocurrencies may have to stop hodling while in office should a bill get enough votes.

According to a framework released on Thursday, chair of the Committee on House Administration Zoe Lofgren — responsible for the day-to-day operations of the House — said she had a “meaningful and effective plan to combat financial conflicts of interest” in the U.S. Congress by restricting the financial activities of lawmakers and SCOTUS justices, as well as those of their spouses and children. The bill, if passed according to the framework, would suggest a change in policy following the 2012 passage of the Stop Trading on Congressional Knowledge Act, or STOCK Act, allowing members of Congress to buy, sell and trade stocks and other investments while in office, but also requiring them to disclose such transactions.

“Congress can act to restore the public’s faith and trust in their public officials and ensure that these officials act in the public interest, not their private financial interest, by restricting senior government officials — including Members of Congress and the Supreme Court — and their spouses and dependent children from trading stock or holding investments in securities, commodities, futures, cryptocurrency, and other similar investments and from shorting stocks,” said Lofgren:

She added:

“I will soon introduce legislative text for a bill built on this framework for reform. Many Members have already concluded that reforms are necessary.”

The framework suggested that lawmakers and SCOTUS justices could still hold and disclose a portfolio with diversified mutual funds, exchange-traded funds (ETFs), treasury bills and other investments that did “not present the same potential for conflicts of interest.” The bill’s framework also proposed disclosure amounts be more precise rather than the “extremely broad” range currently used — for example, from $5 million to $25 million — and be available to the public.

Under the STOCK Act, lawmakers are required to report the purchase, sale or exchange of any investment over $1,000 within 30 to 45 days but the law provides minimal financial and legal consequences for not filing in time — sometimes as little as a $200 late fee. The proposed framework suggested enforcing fines of $1,000 for every 30-day period an individual was in violation of disclosure rules, increasing the late fee to $500 and authorizing the Department of Justice to bring civil actions if necessary. The House Press Gallery’s Twitter account reported on Thursday that the House could consider the proposed legislation as early as next week.

Senators Jon Ossoff and Mark Kelly proposed similar reforms for the STOCK Act in the Senate in January, but there has been no movement on the bill in more than eight months. According to Lofgren, House Speaker Nancy Pelosi tasked the committee to review potential financial conflicts of interest in Congress. However, the speaker previously pushed back against efforts to prohibit lawmakers from owning or trading stocks, saying “they should be able to participate in that.”

A number of House members and senators have disclosed their exposure to crypto investments, including Illinois Representative Marie Newman, Florida Representative Michael Waltz, Wyoming Senator Cynthia Lummis, Texas Representative Michael McCaul, Pennsylvania Representative Pat Toomey, Alabama Representative Barry Moore, and New Jersey Representative Jefferson Van Drew. In December 2021, New York Representative Alexandria Ocasio-Cortez said it inappropriate for her to hold Bitcoin (BTC) or other digital assets because U.S. lawmakers have access to “sensitive information and upcoming policy.”

Lawyers for Celsius investors file motion to have interests represented in court

The legal team requested the court appoint a committee representing certain shareholders or the case could end up “inappropriately and inequitably skewed in favor of the customers.”

An international law firm representing groups of Celsius investors has filed a motion to appoint a committee to represent their interests in the crypto lending firm’s bankruptcy case.

In a Thursday filing with the U.S. Bankruptcy Court in the Southern District of New York, lawyers with the law firm Milbank requested the appointment of an “Official Preferred Equity Committee” to represent certain Celsius shareholders. According to the filing, the equity holders “urgently require their own fiduciary” for representation in court alongside Celsius debtors and an Unsecured Creditors Committee, or UCC.

“The need for a fiduciary to pursue the Equity Holders’ interests is particularly critical when one considers the practical realities of these cases: There are only two groups of real economic stakeholders — the retail customers and the Equity Holders,” said the court filing. “Not only is the UCC laser focused on maximizing value for the customers, without regard for the Equity Holders, but the Debtors also have made it abundantly clear that the UCC is their partner, and these cases are ‘all about the customer.’”

The legal team added:

“An estate fiduciary is needed to take the other side of this dispute before a plan of reorganization is proposed that violates the Bankruptcy Code […] An Official Preferred Equity Committee should be appointed now — and not after the fact — or these cases will be inappropriately and inequitably skewed in favor of the customers to the detriment of the Equity Holders.”

The shareholders included investors in Celsius’ Series B $750-million funding round from November 2021, one of the last before the firm filed for Chapter 11 bankruptcy in July 2022. A hearing on Milbank’s motion will be held on Oct. 6 — the same day the court was scheduled to decide on a motion allowing Celsius to sell its stablecoin holdings to generate liquidity to help “fund the Debtors’ operations.”

We expect to soon begin the Claims process. Our objective is to make the entire process simple and straightforward for all customers.

— Celsius (@CelsiusNetwork) September 15, 2022

Since filing for bankruptcy in July, Celsius has faced legal issues from many clients seeking to reclaim their funds. In August, a group of creditors filed a complaint aimed at recovering more than $22.5 million worth of crypto held in the lending firm’s custody service. However, the price of Celsius’ CEL token has roughly doubled since the Chapter 11 filing, from $0.78 to $1.54 at the time of publication.

Cointelegraph reached out to Milbank, but did not receive a response at the time of publication.

UK gov’t introduces bill aimed at empowering authorities’ to ‘seize, freeze and recover’ crypto

King Charles announced the bill in May to both houses of the U.K. Parliament, saying it was aimed at tackling illicit finance, reducing economic crime and helping businesses grow.

The government of the United Kingdom has introduced a bill aimed at cracking down on money laundering and fraud, specifically by expanding the authorities’ ability to target cryptocurrencies used for illicit purposes.

In a Thursday announcement, the U.K. government said lawmakers had introduced the Economic Crime and Corporate Transparency Bill in Parliament as part of efforts to drive “dirty money” out of the country. The bill contained provisions forcutting down on the “red tape around confidentiality liability” and granting law enforcement the authority “to compel businesses to hand over information which could be related to money laundering or terrorist financing,” including crypto.

“The new law will make it easier and quicker for law enforcement agencies such as the National Crime Agency to seize, freeze and recover cryptoassets — the digital currency increasingly used by organised criminals to launder profits from fraud, drugs and cybercrime,” said the government. “Strengthening powers in the Proceeds of Crime Act will modernise the legislation to ensure agencies can keep pace with the rapid technological change and prevent assets from funding further criminality.”

Graeme Biggar, director general of the U.K.’s National Crime Agency, said:

“Domestic and international criminals have for years laundered the proceeds of their crime and corruption by abusing U.K. company structures, and are increasingly using cryptocurrencies. These reforms — long awaited and much welcomed — will help us crack down on both.”

The bill, first announced by King Charles — who at the time was still Prince — in May during the Queen’s Speech to both houses of the U.K. Parliament, was said to “tackle illicit finance, reduce economic crime and help businesses grow.” The country’s Economic and Finance Ministry has also been working toward incorporating stablecoins as a means of payment into its regulatory framework.

According to the U.K. government, expanding the authorities’ ability to seize, freeze and recover crypto built upon legislation making it “quicker to impose tough sanctions” on individuals tied to Russian President Vladimir Putin following the invasion of Ukraine. The bill came following a major shakeup in the United Kingdom with the passing of Queen Elizabeth II and Prime Minister Liz Truss replacing Boris Johnson.

According to the government, the Metropolitan Police claimed there had been “a big rise in cryptocurrency seizures” in 2021 as the space and number of users had grown. The BBC reported in July 2021 the police had separately seized 114 million and 180 million pounds — roughly $331 million combined at the time of publication — worth of crypto tied to international money laundering.

Russian officials approve use of crypto for cross-border payments: Report

Deputy Finance Minister Alexei Moiseev said the policy describes “how to acquire cryptocurrency, what can be done with it” and its use in cross-border settlements.

The Bank of Russia and the country’s Ministry of Finance have reportedly reached an agreement allowing cross-border settlements in cryptocurrencies.

According to a Thursday report from the Russia-based publication Kommersant, Russia’s Deputy Finance Minister Alexei Moiseev said the government department has agreed “on the whole” with the central bank over a rule that would let residents send cross-border payments using cryptocurrencies. The proposed policy change was reportedly aimed at allowing Russian nationals access to digital wallets.

“[The policy] generally describes how to acquire cryptocurrency, what can be done with it, and how it can or cannot be settled with it in the first place in cross-border settlements,” said Moiseev, according to the report.

Russian news agencies had been reporting that the central bank had been discussing the issue of cross-border crypto payments with government officials. However, the Bank of Russia reportedly opposed allowing crypto exchanges to operate legally and not accepting cryptocurrency as legal tender.

On Sept. 5, Moiseev said:

“Now that people are opening crypto wallets outside the Russian Federation, it is necessary to do this in Russia with entities supervised by the central bank, which are required to comply with Anti-Money Laundering and Know Your Customer requirements.”

Russia has had a mixed relationship with crypto. In 2020, the country passed legislation prohibiting the use of cryptocurrencies including Bitcoin (BTC) for payments. President Vladimir Putin also signed a bill into law in July banning digital financial assets as payments. In May, Trade Minister Denis Manturov suggested Russia would legalize crypto payments “sooner or later.”

Since Russia’s invasion of Ukraine in February, the government, businesses, and certain individuals within the country have been the target of comprehensive economic sanctions. On Sept. 15, the United States Treasury Department added 22 individuals and two Russia-based entities to its sanctions list, claiming they had furthered the government’s objectives in Ukraine.